Bill Summary – FastDemocracy

Stricken language would be deleted from and underlined language would be added to present law.
 State of Arkansas
 93rd General Assembly                        A Bill
 Regular Session, 2021                                                             SENATE BILL 683
 4
 By: Senator K. Hammer
 By: Representative Warren
 7
                                   For An Act To Be Entitled
                AN ACT TO PROVIDE FOR AN ARKANSAS PLAN PORTAL; AND
                FOR OTHER PURPOSES.
11
12
                                               Subtitle
                         TO PROVIDE FOR AN ARKANSAS PLAN PORTAL.
15
16
 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
18
        SECTION 1.       Arkansas Code Title 11 is amended to add an additional
 chapter to read as follows:
                                              CHAPTER 16
                                       ARKANSAS PLAN PORTAL
23
        11-16-101.       Arkansas Plan Portal  Definitions.
        (a)    As used in this section:
                (1)(A)       "Investment advisor" means any person that, for
 compensation, engages in the business of advising others, either directly or
 through publications or writings, as to the value of securities or as to the
 advisability of investing in, purchasing, or selling securities, or that, for
 compensation and as part of a regular business, issues or promulgates
 analyses or reports concerning securities.
                         (B)   Investment adviser includes a financial planner or
 other person that, as an integral component of other financially related
 services, provides or holds himself, herself, or itself out as providing
 investment advice to others for compensation and as part of a business.
                         (C)   Investment adviser does not include:
     *JNL381*                                                                 04/13/2021 12:45:47 PM JNL381
                                                                                       SB683
                              (i)     A bank, savings and loan association, credit
 union, or trust company;
                              (ii)    A lawyer, accountant, engineer, or teacher
 whose performance of the services described in subdivision (a)(1)(A) of this
 section is solely incidental to the practice of his or her profession;
                              (iii)    A broker-dealer whose performance of the
 services described in subdivision (a)(1)(A) of this section is solely
 incidental to the conduct of his or her business as a broker-dealer and who
 receives no special compensation for them;
                              (iv)    A publisher of any bona fide newspaper, news
 column, newsletter, news magazine, or business or financial publication or
 service of general, regular, and paid circulation, whether communicated in
 hard copy form, by electronic means, or otherwise, that does not consist of
 the rendering of advice on the basis of the specific investment situation of
 each client;
                              (v)     A person who has no place of business in this
 state if:
                                      (a)   His or her only clients in this state are
 other investment advisers, broker-dealers, banks, savings institutions, trust
 companies, insurance companies, investment companies as defined in the
 Investment Company Act of 1940, pension or profit-sharing trusts, or other
 financial institutions or institutional buyers, whether acting for themselves
 or as trustees; or
                                      (b)   During the preceding twelve-month period
 he or she has had fewer than six (6) clients who are residents of this state,
 other than those persons specified in subdivision (a)(1)(C)(v)(a) of this
 section; or
                              (vi)    Any person not within the intent of this
 subdivision (a)(1) as determined by the Treasurer of State; and
               (2)(A)     "Small business" means a business enterprise with fewer
 than five hundred (500) employees and less than eighty million dollars
 ($80,000,000) in gross sales or receipts.
                        (B)   "Small business" includes without limitation a sole
 proprietorship.
      (b)    The Treasurer of State shall:
               (1)   Create a web-based portal that shall be:
                                                2            04/13/2021 12:45:47 PM JNL381
                                                                                SB683
                   (A)    Known as the "Arkansas Plan Portal"; and
                   (B)    Used for the purpose of connecting one (1) or more
 small businesses with an investment advisor located near or in the same area
 as the small business;
            (2)   Partner with the Department of Finance and Administration to
 create a listing that contains the contact information of each employer in
 this state, including sole proprietorships;
            (3)   Report bi-annually on the usage of the portal and the number
 of connections between small businesses and investment advisors made through
 the portal to the:
                   (A)    House Committee on State Agencies and Governmental
 Affairs;
                   (B)    Senate Committee on State Agencies and Governmental
 Affairs; and
                   (C)    Joint Committee on Public Retirement and Social
 Security Programs; and
            (4)   Create and annually update a small business listing and
 investment advisor listing.
      (c)   The portal shall:
            (1)   Enable the submission of:
                   (A)    A small business's information in order for the small
 business to be listed on the portal; and
                   (B)    An investment advisor's information in order for the
 investment advisor to be listed on the portal;
            (2)   Enable a small business that is listed on the portal to
 enter basic information in order to be connected with one (1) or more
 investment advisors included on a list that is generated as a result of the
 basic information entered;
            (3)   Enable an investment advisor that is listed on the portal to
 enter basic information in order to be connected with one (1) or more small
 businesses included on a list that is generated as a result of the basic
 information entered;
            (4)   Enable an email containing information on a small business
 that selects an investment advisor to be sent to the investment advisor; and
            (5)   Include information concerning the Setting Every Community
 Up for Retirement Enhancement Act of 2019, Pub. L. No. 11694.
                                          3            04/13/2021 12:45:47 PM JNL381
                                                                                    SB683
      (d)   Information concerning a small business shall be sent to a state-
 sponsored retirement financial planning option if:
               (1)   The small business does not find an investment advisor that
 meets the needs of the small business after entering the basic information of
 the small business into the portal; or
               (2)(A)     None of the investment advisors selected by the small
 business contact the small business within forty-five (45) days of the email
 described in subdivision (c)(4) of this section's being sent to the
 investment advisor.
                        (B)   A state-sponsored retirement financial planning option
 shall not contact a small business until fifteen (15) days after the forty-
 five-day time period described in subdivision (d)(2)(A) of this section has
 lapsed for each investment advisor selected by the small business.
      (e)   The state shall not be liable for a data breach, the actions of an
 investment advisor, the actions of a small business, or any loss incurred by
 a small business or investment advisor or an employee of a small business or
 investment advisor.
18
      SECTION 2.        DO NOT CODIFY.   TEMPORARY LANGUAGE.
      (a)(1)     The Treasurer of State shall create and implement the Arkansas
 Plan Portal within six (6) months of the effective date of this act.
               (2)   Upon completion of the creation and implementation of the
 portal, the Treasurer of State shall coordinate a demonstration of the portal
 for the:
                        (A)   House Committee on State Agencies and Governmental
 Affairs;
                        (B)   Senate Committee on State Agencies and Governmental
 Affairs; and
                        (C)   Joint Committee on Public Retirement and Social
 Security Programs.
      (b)   The first biannual report on the usage of the portal and the
 number of connections between small businesses and investment advisors made
 through the portal shall be provided to the House Committee on State Agencies
 and Governmental Affairs, Senate Committee on State Agencies and Governmental
 Affairs, and Joint Committee on Public Retirement and Social Security
 Programs at the first scheduled meetings of the House Committee on State
                                              4            04/13/2021 12:45:47 PM JNL381
                                                                             SB683
 Agencies and Governmental Affairs, Senate Committee on State Agencies and
 Governmental Affairs, and Joint Committee on Public Retirement and Social
 Security Programs that are held six (6) months after the date on which the
 portal is demonstrated to the House Committee on State Agencies and
 Governmental Affairs, Senate Committee on State Agencies and Governmental
 Affairs, and Joint Committee on Public Retirement and Social Security
 Programs.
 8
 9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
                                        5            04/13/2021 12:45:47 PM JNL381